Senate Approves N348 billion Payment for Petrol Subsidy

The Senate on Wednesday approved the payment of N348.003bn to 74 Oil Marketing Companies, OMCs, as outstanding fuel subsidies owed them by the federal government as at June 30, 2017.

The approval is sequel to the presentation at plenary of a 14-page interim report of the Committee on Downstream Petroleum Sector by the Chairman, Senator Kabir Marafa, on promisory note programme and a bond issuance to settle inherited local debts and contractual obligations to petroleum marketers.

The payment, according to Senate, will be through promisory note programme and bond issuance to settle inherited local debts and contractual obligations to the 74 oil marketing companies .

A breakdown of the 74 OMCs shows that 55 oil marketers are to be paid verified figures against their names while 19 others with contentious claims are to be paid 65 percent of their claims pending further investigation.